It has been required that a small-size high-speed swivel tool head be improved for productivity of a CNC automatic lathe. It has been a growing interest in shorter machining times with an increasing cutting speed. However, the increase in a rotating speed of a swivel tool head causes adverse effects: vibration and noise from a swivel tool head system. In this study, the fatigue life and contact pressure of a swivel tool head system were calculated, and its static and dynamic characteristics, such as vibration, noise, and precision, were measured using a reliable test device. With all these results, we developed a new prototype of a small-size high-speed swivel tool head, showing less noise and better precision than those of conventional ones.